Retail management is a specific type of business management in which the management process takes place within a retail store. Retail managers generally have oversight over the inventory of a retail business as well as its employees. Other types of business managers are more involved in more strategic and higher-level decision-making.

Management Basics

Business management is a leadership role in an organization that includes employee motivation and supervision, monitoring of business activities, organizational communication, and direction and planning. Decision-making is a role often associated with a business manager. Other employees within the business typically look for the manager to provide vision, direction and fair working conditions, and to instill a sense of purpose for business activities.

Retail Basics

Retail has become much broader in scope in the early 21st century, thanks to the expansion of Internet retailing and other, less-traditional retail channels. Still, most retail business takes place in brick-and-mortar stores. These stores break bulk inventory into single consumable units, hold inventory for purchase, merchandise it to customers, provide services in support of the products, and attempt to satisfy the needs of customers. Retailers typically buy products from wholesalers or manufacturers for resale to end customers.

Store Management

Retail managers have two very general areas of accountability -- people and products. Motivating employees to deliver a high level of sales and service to customers is a primary retail management responsibility. Retail managers are also generally accountable for ensuring store products are merchandised effectively and monitored for shrinkage. Shrinkage is loss due to employee theft, shoplifting or error. High levels of inventory loss significantly impact the profit and loss performance of a retail store.

Unique Characteristics

As noted, retail management is a specific application of business management. Whereas some types of business managers spend significant time in offices planning and making decisions, retail managers more often provide hands-on leadership on the retail sales floor. Retail managers usually hire and train employees to perform their sales, service or other roles in the retail store. Other types of business sometimes have trainers assigned to that role. Many retail managers also interact directly with customers in sales and service activities, which you do not often see in more office-based business management.

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About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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Kokemuller, Neil. "What Is the Difference Between Retail & Business Management?" Small Business - Chron.com, http://smallbusiness.chron.com/difference-between-retail-business-management-20339.html. Accessed 18 December 2018.

Kokemuller, Neil. (n.d.). What Is the Difference Between Retail & Business Management? Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/difference-between-retail-business-management-20339.html

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